The Contract Clause and Corporate Rehabilitation: A Comment on Leca Realty Corporation v. Manuela Corporation.

The article discusses the Philippine corporate rehabilitation system and the extent of the non-impairment clause. The Court reportedly invoked non-impairment in the contract argument between Leca Realty Corporation and Manuela Corporation. It is stated that although the state recognizes the need to aid in the rehabilitation of distressed corporations, creditors must also be equitably and promptly paid. The need for a substantive law on corporate rehabilitation is also given.